US company still to deliver industrial washer, dryer purchased for prison three years ago – PAC hears

The Public Accounts Committee (PAC) yesterday heard that an industrial washer and an industrial dryer, purchased by the former Ministry of Home Affairs for the Camp Street Prison in 2014, have still not been delivered by the United States-based contractor although a full payment totaling over $7.5 million was made.

According to the 2015 Auditor General’s report, as of September, 2016, the industrial washer and the industrial dryer, valued at $7.542 million, which were purchased for the Guyana Prison Service, were still not received.

Permanent Secretary (PS) of the current Ministry of Public Security Daniella McCalman, who appeared before the committee at the Public Buildings yesterday, related that the purpose of the items was to “ease the burden” at the prison, as there was already a washer and dryer in operation there.

McCalman related that the contract, worth approximately $10 million, was awarded to United States Company, Tactical and Commercial Inc.

“Mr Chairman this is the Ministry of Public Security of Guyana. I am worried that there is a massive breakdown in the financial management in that ministry. Terrible,” PPP/C committee member Nigel Dharamlall said, before proceeding to ask what the procurement process had been for the items.

At the time of the procurement, Clement Rohee headed the ministry under the then PPP/C government.

Although McCalman had initially stated that the items were procured through the quotation method, following further questioning by the committee Chairman Irfaan Ali, she withdrew the statement and said that the contract was sole sourced at the national procurement level. She assured the PAC that the ministry had requested and had been granted permission to sole source.

However, she also related that the full payment was made to the contractor for the items, although no bond was in place.

McCalman said that the ministry had made several attempts to contact the company, through calls and emails and that correspondence was also sent to the immigration office for assistance.

She recalled that once while on vacation in the United States, she had made contact with a Mr King, the principal for the company, via telephone, but said that was the first and last time she was able to make contact.

There is no local office for the company, she said.

The PS was sure to inform committee members that she was not the accounting officer in charge at the time the contract was drawn up, as she took up her post as PS in November, 2015.

Asked by committee member Jermaine Figueira what measures were in place to prevent a reoccurrence of an incident of this nature, McCalman said she would ensure that full amounts are not paid to companies unless items are delivered, and that that a bond is always in place for contractual agreements.

The PS promised to provide the committee with the letter outlining the rationale for sole sourcing that would have been presented to the National Procurement and Tender Administration Board, after she was asked by Dharamlall why such was needed, given that the Georgetown Prison suffered no significant impact as a result of the items not being delivered.

Ali, meanwhile, recommended that the US Ambassador be contacted by the ministry for assistance in resolving the matter with the overseas contractor.